Oleg Galeev

3 weeks ago

How to Buy Tether (USDT) in Canada in 2022

How to buy Tether USDT In Canada featured image with Tether logo and Canadian flag

Tether (USDT) is a stablecoin pegged to the US dollar meaning that one Tether equals one dollar.

Launched in 2014, Tether was created by the same Hong Kong company that owns the cryptocurrency exchange Bitfiniex.

Tether is the most-used stablecoin in the world and is often used to buy cryptocurrencies where fiat deposits are unavailable. In fact, Tether has the highest daily and monthly trading volume of any cryptocurrency, including Bitcoin

Unfortunately, the Ontario Securities Commission has banned several Canadian exchanges from listing Tether due to alleged market manipulation. Further, each USDT token is supposed to be backed by a physical dollar, however, there has never been an audit produced to prove those funds exist.

There have also been concerns about the relationship between Tether and Bitfinex with one critic claiming that Bitfiniex prints Tether tokens at will without the necessary dollar reserves to back them.

Due to the controversies, of which there are many, the OSC has deemed it necessary to remove Tether from regulated Canadian crypto exchanges. This can make it difficult for Canadians to buy USDT, however many global exchanges still list the digital currency.  

So, how to Buy Tether in Canada in 2022?

To buy Tether in Canada you must first sign up to a crypto exchange that lists it (see below). In most cases, you will need to verify your account by going through the KYC process and uploading identity documents. 

Where to Buy Tether in Canada?

Below we have listed some of the best crypto exchanges where you can buy USDT based on ease of use, reputation and cost. 

Binance

Binance Canada is the largest crypto exchange in the world. It offers hundreds of cryptocurrencies including Tether USDT. It can be expensive to deposit Canadian dollars to Binance since you must go through a third-party provider such as Banxa.

Alternatively, you can deposit another crypto to your Binance account and swap it for USDT. This would be the cheapest option. You can use a debit card to buy USDT, but this will incur high fees so we don’t recommend it. 

Binance is an incredibly popular exchange due to the number of cryptocurrencies listed as well as its cheap fees but it can seem daunting for beginners due to its many menus and features. Canadians can create an account here.

Note, that Binance is currently not available for Ontario residents.

NDAX

NDAX is one of the few Canadian crypto exchanges where you can buy Tether. You can deposit Canadian dollars via Interac e-Transfer for free and buy USDT easily. 

NDAX has a good reputation for being a secure exchange, plus it has a beginner-friendly interface and many good customer service reviews. There is a fixed 0.2% buy and sell fee, which is a lot cheaper than some other exchanges. We recommend NDAX for its ease of use and simplicity for Canadians. 

Crypto.com

Crypto.com has become one of the top exchanges in the world. You can deposit Canadian dollars via Interac e-Transfer for free, which makes it easy for Canadians to buy Tether. 

Crypto.com is a secure and trustworthy exchange but the fees are higher (around 0.6%). The exchange has many features including staking and lending, Visa cards, and more. So if you’re looking to use its additional features then we recommend using crypto.com to buy Tether in Canada. We do, however, think there are cheaper exchanges to buy and sell Tether in Canada, so Crypto.com may not be the best place to trade. 

Kraken

Kraken is a beginner-friendly crypto exchange with many cryptocurrencies listed. You can deposit Canadian dollars via Interac e-Transfer for free, but the fees for trading stablecoins is 0.9%, so it is not the cheapest place to buy Tether in Canada.

However, Kraken does have additional features such as staking and lending and an NFT marketplace which are worth using. However if you’re just looking for somewhere to buy USDT in Canada, then we don’t recommend it due to its high fees. 

Paytrie

Paytrie is a Canadian crypto exchange that offers Interac e-Transfer deposits. Paytrie is built by Canadians for Canadians and is registered with FINTRAC. However, there is a 0.6% (minimum $5) trading fee, so it’s not the cheapest exchange to buy Tether in Canada.

Still, the platform is easy to use and you can buy USDT on either the Ethereum or Binance networks. 

How to Keep Tether (USDT) Safe and Secure in Canada

Once you have purchased Tether, you can either swap it for another crypto or store it safely using a private crypto wallet. If you keep cryptocurrency on an exchange you take the risk of losing it in case the exchange is hacked. While most exchanges are secure, there have many hacks throughout crypto’s history.

The best way to store cryptocurrency is with a private wallet. There are many different types to suit your needs including apps you download on your phone or desktop wallets you can download on your computer. 

The safest way to store USDT is on a hardware wallet such as a Ledger or Trezor. These keep your seed phrases offline, so they can’t be stolen. 

We have reviewed several of the best crypto wallets in Canada for you to choose from in our previous article

How to Sell Tether in Canada

It is easy to sell Tether in Canada. Transfer your Tether back to the crypto exchange you bought it from. Then, you can sell it for another crypto or for Canadian dollars if your exchange allows it. If you sell for fiat, you can then “withdraw” these funds to your bank account. Just be aware of any withdrawal fees. 

Every exchange will have a variation in layout, but the steps to sell and withdraw will mostly be the same. 

USDT FAQs For Canadians

Can you buy USDT in Canada?

Yes, you can buy USDT in Canada, but it is no longer available at every Canadian crypto exchange. 

What is the best way and place to buy USDT in Canada?

We suggest you buy USDT using one of the cryptocurrency exchanges we have mentioned in this article. However, we think Binance or NDAX are the best choices due to their cheap fees. 

How to trade USDT in Canada?

You can trade USDT in Canada using the crypto exchange where you have signed up. Simply click “trade”, “swap” or “sell”, and you will see which cryptocurrencies you can swap USDT for on that exchange. USDT usually has the most trading pairs of any crypto, so you will have a lot of choice. 

Is USDT a good investment for Canadians?

Tether is not really an investment since it is a stablecoin. One USDT should always be worth $1. However, USDT is good for holding so that you can swap it for another crypto of your choice. Using Tether is a good way to buy other cryptocurrencies quickly, rather than depositing fiat first, which can take days. We do, however, recommend being wary of Tether due to its controversies. There are several other stablecoins out there that may be better choices such as USDC and BUSD. 

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Author

Oleg is a Canadian citizen & crypto expert who has been trading since 2016. He started out with Coinbase, Kraken and Peer-to-Peer exchanges. After some time, centralized exchanges started charging crazy fees to their users.

He decided to review different crypto exchanges that operate in Canada and start a Youtube channel in order to educate Canadians on what kinds of things are going inside each one while giving them unbiased advice. On top of that, Oleg also has experience with NFT, airdrops, and crypto staking and he is constantly checking on new crypto assets.

His writing has been featured in popular Canadian media sources such as Toronto Sun and Ottawa Citizen.